Student Loans : News, Updates and Blog Posts

When it comes to financing graduate school a lot of students wonder if it is better to choose a lesser-know inexpensive school or a more well-known expensive school. Although this is completely a matter of opinion, there are a few justifications for going to a graduate school with a higher pricetag.

1: Your workplace might have a tuition reimbursement program: If you are going to graduate school while you are working you may be able to take advantage of tuition reimbursement benefits.  This means that your employer will pay for you to take classes as long as they are relevant to your field and could help you in your job.

2: Graduate students can qualify for more federal financial aid: Stafford loan limits are a lot higher for graduate students than they are for undergraduate students. In fact, the lifetime aggregate Stafford loan limit is $138,500 for graduate and professional degree students.

3: You may be able to take advantage of income based repayment: Most students coming out of graduate school have loans to pay off. If your monthly loan payments are very high after graduate school you may qualify for income based repayment.This plan helps borrowers keep payments low with caps based on their income and family size. If a borrower still has a loan balance after 25 years it is forgiven completely.

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Many people think that graduate students are left out in the cold when it comes to federal financial aid. Fortunately, this is not true at all. In fact, graduate students have just as many federal financial aid options as  undergraduate students.

For graduate students there are both subsidized graduate Stafford loans and unsubsidized Graduate Stafford loans. Subsidized Stafford loans are awarded based on financial need. Any student who qualifies for this kind of loan will not be charged any interest while they are in school. Unsubsidized Stafford loans are not awarded based on financial need. Any eligible student can take out an unsubsidized Stafford loan. The best thing about Stafford loans for graduate students is that the annual loan limits are a lot higher than they are for undergraduate students.

Graduate students also have the opportunity to apply for federal Graduate PLUS loans. This federal loan  low fixed interest rate, but  comes with the flexibility of a private student loan. The Grad PLUS loan is based on credit rather than on need  so as long as student has decent credit they can qualify.

To qualify for any kind of federal financial aid a graduate student must file the FAFSA. If you are planning on attending grad school in the fall of 2010 the time to apply is now.

Many undergraduate student apply for federal Stafford loans to help them pay for college. But are the same financing options available to graduate students? The answer is yes! There are both subsidized and unsubsidized Stafford loans available to graduate students.

When graduate students apply for Stafford loans the process is basically the same as it is for undergraduate students. They file the FAFSA and apply for financial aid through their school. However, graduate students do have one advantage; they have much higher Stafford loan limits which means that they can potentially fund a lot more of their education through federal loans.

There are definitely signs that 2010 will be a better year for the economy and the job market. Many companies are slowly starting to hire again, but there are still a lot more unemployed people than there are jobs available. If you are a recent college graduate trying to break into the workforce, think about all of the competition you are up against. Why not take this opportunity to get ahead of the competition and go to grad school.

Right now is the perfect time to apply for the summer or fall of 2010. If you hurry you might even be able to take a class or two this coming semester. However, do not rush into anything. Graduate school can be expensive and there is no need to take on unnecessary debt.

If you are serious about the program you choose there are a ton of different financial aid options for graduate students including federal financial aid, private student loans, and scholarships. If you take the route of student loans it is important to borrow responsibly. You never want to borrow more money that what you think you will make in your first year of employment.

Whatever you decide to do good luck and know that the perfect job will be waiting for you soon!

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If you have been out of work for a while you might have made the last minute decision to attend graduate school this coming semester. You have been accepted and have officially enrolled.  Now what to do about financial aid?

If school starts next month:

• Apply for financial aid using the Free Application for Federal Student Aid (FAFSA) as soon as possible.
• Ask the school that you plan to attend what other financial aid they can offer you. Find out if they have any scholarships or on campus jobs available. Also find out what kinds of payment plans they offer.
• Keep in touch with the school regarding any paperwork you need to turn in so that you do not miss any deadlines.

If school starts next week:

• Fill out the FAFSA immediately. Although you have to do this quickly rushing through the for could lead to costly mistakes. Use the “Live Help” option on the site or call the Federal Student Aid Information Center if you need assistance.
• Talk to the financial aid administrator at the school you plan to attend. Ask whether there are other forms you need to complete and how and when you will receive your financial aid.

If you will not receive enough federal financial aid in time for graduate school, you can always apply for a private student loan. These loans do not require a lengthy application process and can be obtained at any time during the year. You can compare private student loan lenders to find out what loan best suites you.

In any case communication is key. Make sure that you are in constant contact with your financial aid officer so that they know your plan and you know what they expect of you.

If you are planning on attending graduate school in the fall of 2010 then you should definitely file a FAFSA this January.   Tomorrow the 2010-2011 FAFSA will be available. Just like when you were an undergrad, you need to to file the FAFSA in order to be eligible for an federal student aid including federal Stafford loans and Graduate PLUS loans.

As a graduate student you are an independent student no matter what your age is. This means that you can file the FAFSA completely on your own and your parent’s income does not matter. Graduate students usually find that they are eligible for a lot more financial aid than undergraduate students.

Remember to file the FAFSA as close to January 1st as possible since some financial aid is awarded on a first come first serve basis. Happy New Year everyone and good luck with your FAFSA!

Taking out graduate student loans on top of undergraduate student loans can be risky. Therefore, it is important to exercise responsible borrowing. Before you borrow make sure you know what your goals are and have a solid plan about what you are going to be doing in life after graduation.

If you have made the decision to go to grad school you probably know what job field you will end up in. As a potential borrower it is best to look at the median annual salary of the job you hope to have and borrow no more than that. With a ten year repayment plan you will be looking at putting 10% of your income towards paying off your loans every year.

While you are in college you are not required to make any payments on your federal student loans. These loans do not go into repayment until you graduate. However, in particular instances your lender might not know you are in school and put your loans into repayment. In these cases you need to fill out an In School Deferment Form.

When to fill out an In School Deferment Form:

1: If you transferred schools

2: If you took time off from school and decide to go back

3: If you are going to graduate school

Where to send your In School Deferment Form:

You should send the form directly to your lender. If you do not know who your lender is you can contact the Department of Education’s Borrower Tracking Department at 800.433.3243. They will be able to tell you exactly where to send your form.

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Did you know that if you decide to take a semester off from school your federal student loans go into repayment right away? That is right! You will get a six month grace period after your student-status drops below half-time even if you plan on eventually returning to school.

For example, say you leave school in December and plan to take the spring semester off. After a six month loan grace period you will have to start paying you loans back. You will have to make payments throughout the summer but, if you decide to go back to school in September you can apply for in-school deferment and hold off on making additional payments until you graduate. Just remember that you will have already used up your six month grace period so you will have to start making payments on your original loans right away.

This holds true for graduate and undergraduate students! So think twice before you decide to relax for a few months. It might be more stressful than you think!

Mint.com: Budget your life on the go with the Mint.com iPhone application. Mint.com will help you make sure all of you expenses are paid on time and will even help you rack your federal student loans and private student loans!

Free WiFi Finder: Never pay for internet access again! Free WiFi Finder uses your current location to help you find the closest establishments with free internet access. You can write your papers while enjoying a cup of coffee at Starbucks or a sandwich from Panera!

Coupon Cabin:  Coupon Cabin helps you find the best deals online and printable coupons. This application will help you save money on everything from groceries and cleaning supplies to clothes and oil changes.

Money Saver: The Money Saver application gives you over 150 ways to save money on a daily basis. If will provide you with suggestions like looking for locations with the lowest cost of living and using ATMs that will not charge you fees. This way you will have more money for student loan repayment!

Cheap Gas!: Cheap Gas helps you find the gas stations with the cheapest gas near your location. Find gas near your apartment or campus, but never pay more than necessary.